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An introduction to key concepts commonly used in the analysis of the economy by the Research Department Michael Adams 23 June 2014 EN/ADM/2014/Pres/14.

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Presentation on theme: "An introduction to key concepts commonly used in the analysis of the economy by the Research Department Michael Adams 23 June 2014 EN/ADM/2014/Pres/14."— Presentation transcript:

1 An introduction to key concepts commonly used in the analysis of the economy by the Research Department Michael Adams 23 June 2014 EN/ADM/2014/Pres/14

2 2 MFSM/GFS GFS MFSM SNA BOP SNA

3 Introduction QB March 2011  Visually orientated introduction  Economists usually focus on economic growth, stability and equity  Evaluating the state of the economy: – Economic growth SNA 1993 – Full employment (BC) – Balance of payments (BoP) stability BPM5 – Price and financial market stability MFSM2000 – An equitable distribution of income GFSM2001

4 4 Reason for chart Three fold Cannot analyse economy without taking into account all four macroeconomic accounts According to the four manuals Three accounts accrual basis (SNA, BoP, MFSM) 1 ST January to 31 ST December One account cash-flow (GFS) ? Semi 1 st April to 31 ST March Adjustments between cash and accrual (challenged) Economic analysis /inter linkages in the economy across divisions Staff training and development

5 Economic analysis/interlinkages Design of the Chart Colour coded Segments 1-38 Follow format of the Quarterly Bulletin BIG BLOCKS SNA Domestic output Gross domestic expenditure GFS General government Public corporations All institutions must fit in somewhere in the four macroeconomic accounts

6 Economic relationships QB March 2011  Identity relationship: – GDP = GDP agriculture + GDP mining + GDP manufacturing ………… GDP Gov.Services – Trade account = X mining + X agriculture + X manufacturing - M mining – M agriculture – M manufacturing – Money supply = M1 + M2 +M3 – Credit extension = Households + corporates – G -T= Deficit  Behavioural relationship: – C t = a + b.Yd t + d.interest rate t + ɛ t

7 Economic interpretation QB March 2011

8 8 Booklet Definitions Flow of chart Use for Pre-MPC (discussion) Various forms being used in the Department (NO1, B03, C68 and F02) Balance sheet or income statement Balance sheet – stock position Income statement – flow position Government cash-flow position

9 Economic chart QB March 2011

10 CONCLUSION  No means exhaustive  Each division use area to expand  Time series structure  Overview  Reasons for changes  Read the Quarterly Bulletin and the economic overview of the country

11 Thank you Tel: Fax: QB March 2011


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